Project Economics (Eng)
Introduction
Before making important project investment decisions it is key to properly estimate the potential value of a project and quantify its risks using Project Economics. Therefore a project economist should be able to make a financial model with the right level of detail bearing in mind for the intended core decisions.
After that, a good presentation of the analysis allows the management/Board of Directors to efficiently make a well-informed decision. This course is based on working practice and will give the student the most important knowledge and skills to start working as a project economist.
Purpose
At the end of this course the participants will be able to independently calculate the economic feasibility of projects and to subsequently present this to allow a well informed decision. Students will also gain practical knowledge and skills that have proven their usefulness in business. In addition, the perspective of governments on decision making is covered.
Set-up
In order to transfer knowledge dynamically and interactively, real life case studies will be used. Furthermore, there will be both quizzes and polls. In other words: this course stimulates and expects active participation.
Project Economics is a 3-day course, however it is also possible to select just one or two days. In that case, the knowledge of previous days is assumed to be known.
Content of Project Economics
- Day 1: Project Valuation – Basics
- Time value of money: inflation and discounting
- Cost estimation: how to get good cost estimates
- Tax calculations: what options are available and how to apply them
- Modeling basics: how to set up a model that is properly auditable
- Decision criteria: NPV, IRR, Payback Period, etc.
- Day 2: Project Risk & Uncertainty/Sensitivities
- Which risks to model regarding a single decision
- Model and present sensitivity analyses based on these risks
- Incremental decisions: interaction with existing projects
- Valuation of pre-investments with uncertain outcomes
- When/how to use probabilistic analysis
- Day 3: Presenting Economics/Investment Decision Making
- Examples of standard evaluation methodologies
- Analysis to support key decisions
- Post implementation project reviews for future decisions
- Presenting different types of decisions effectively
- Investments to increase sales volumes
- Evaluating new tax rules
- Infrastructure investments
Target audience
The course is specifically created for managers and professionals, responsible for the process of investment decisions. For example: project managers, project engineers, project economists, consultants en project finance staff members.
Requirements
- Laptop with Excel and Powerpoint
- A basic knowledge of financial/economic terminology is desirable
- Level is post-academic
In-company training
SPBI can also realise Project Economics at your company, furthermore there is the possibility to adjust the course to your specific needs. For more information, you can contact both Tridata and SPBI.
Because of the pandemic, the course is constructed for interactive and dynamic online participation as well.
Course dates Project Economics
Course dates are upon request
Course times
The course will be held from 9:15 to 16:00, with possible extension to no later than 16:15.
Study load
Per week you can count on 8 hours of study, on the course day itself. In addition, you will spend 2-4 hours per week preparing and processing the course day in your free time. This depends on the intensity of the course material and your own educational background.
Costs
The costs per person are €750 per day or €2000 for the full course.
The course is exempted from VAT (tariff 0%) and includes course material and a participant certificate as well as coffee/tea and a luxury lunch.
Location
Europalaan 400 | 3526 KS Utrecht or virtual.
Lecturers
Ir Raoul Scheepmaker MBA studied Geodesy at the Technical University in Delft and thereafter completed his full-time MBA at the “Rotterdam School of Management” in Rotterdam and ISA in Paris. He has worked at Shell for 28 years in multiple locations around the world (such as the UK, Brunei and Australia) with extensive practical experience in project economics. Raoul led Shell’s global economic modeling team and later headed the economics and planning teams in Brunei and Australia, where he worked on more than 1,000 investment decisions. In the Netherlands he was JV Governor Gas for Europe, where he prepared decisions regarding not only NAM/GasTerra/Groningen but also the gas distribution company in Athens.
Drs Hein Dungelmann MBA obtained his master’s degree in Medicine from Leiden University and after that completed a full-time MBA at the “Rotterdam School of Management” and the “University of Michigan”. He has extensive experience in strategic and improvement projects in particular with health insurance companies and healthcare providers. As a result of this experience he is a specialist in setting up, expanding and maintaining strategic partnerships as well.
Hein and Raoul are founding partners of SPBI Consulting. A consultancy firm specialised in Strategic Planning and Business Improvements. One of their main services is to help organisations with their investment decisions.